bumping the compression by shaving .015-.020" will not increase the cylinder temp enough to worry about it. It will though increase compression enough to notice the difference.
Some simple mods that make the lil blaster motor work well are:
Shaving .015-.025" off the head. ($40)
Lightening the flywheel 1-2oz. ($40)
Advancing the timing 2.5-4.0 degrees ($40)
Setting the spark plug gap to .018" (free)
Installing a new Coil boot ($5)
Installing a OEM banshee left side carb (26mm) (on eBay for $40 for the pair)
Aftermarket Reeds ($40-75)
K&N Filter with outer wear (pod style $55)
Aftermarket exhaust ($150)